AMS No. 205-06

Becky Unkenholz (202) 720-8998

Becky.unkenholz@usda.gov

Billy Cox (202) 720-8998

Billy.cox@usda.gov

WASHINGTON, Sept. 6, 2006 -- The U.S. Department of Agriculture today announced a tentative partial decision that recommends amendments to the transportation credit provisions of the Appalachian and Southeast Federal milk marketing orders. This decision is based on testimony and evidence given at a public hearing held in Louisville, Ky., on Jan. 10 – 12, 2006.

This decision adopts, on an interim final and emergency basis, proposals to amend certain features of the transportation credit provisions of the Appalachian and Southeast Federal milk marketing orders. Specifically, this decision will establish a mileage rate factor using a fuel cost adjustor used in the transportation credit provisions of both orders, increase the maximum transportation credit assessment rate for both orders, and establish diversion limits on eligible Class I milk receiving transportation credits. A separate decision will be issued addressing proposals concerning Producer milk provisions and transportation credits on intra-market order movement of milk within the Appalachian and Southeast marketing areas.

Interested persons have until Nov. 13 to file comments in response to the tentative partial decision. USDA will determine if producers approve the amended order.

For additional information about the decision, contact:

Appalachian: Harold H. Friedly

USDA/AMS/Dairy Programs

P.O. Box 18030, Louisville, KY 40261-0030

Tel. (502) 499-0040; e-mail: friedly@malouisville.com

Southeast: Sue L. Mosley

USDA/AMS/Dairy Programs

P.O. Box 491778, Lawrenceville, GA 30049

Tel. (770) 682-2501; e-mail: smosley@fmmatlanta.com